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MONTREAL,
QUEBEC--(Marketwire - Oct. 19, 2009) - MDN Inc. ("MDN")
(TSX:MDN) is pleased to announce that the Tulawaka Gold Mine in
Tanzania produced 29,489 ounces of gold during the third quarter ended
September 30, 2009. Tulawaka gold production now amounts to 728,910
ounces since the beginning of operations in March 2005.
For the third quarter, 28,373 ounces of gold were sold into the spot
market at an average price of US$948 for total sales of US$26.9M. Since
the beginning of operations in March 2005, a total of 717,868 ounces of
gold was sold.
For the third quarter, a total of 39,969 tonnes were mined from the
underground mine at an average mine grade of 16.5 g/t gold whereas the
plant facilities processed 115,236 tonnes of ore at an average grade of
8.5 g/t gold and at a gold recovery rate of 94.2%. The difference in
tonnage comes from the stockpile at the plant.
Total cash costs averaged US$375 to produce an ounce of gold during the
third quarter of 2009. The ROM (Run of Mine) stockpiles at quarter end
were 262,390 tonnes at an average grade of 2.45 g/t gold, representing
approximately 9 months of ore supply for the process plant, assuming
the current throughput of approximately 30,000 tonnes processed per
month due to the hardness of the rock on the stockpiles.
2009 year to date production results
For the first nine months of the year 2009, a total of 103,778 tonnes
were mined from the underground mine at an average mine grade of 15.3
g/t gold whereas the plant facilities processed 325,666 tonnes of ore
at an average grade of 7.6 g/t gold and at an average recovery rate of
94%, for a production of 74,543 ounces of gold. The difference in
tonnage comes from the stockpile at the plant.
For the nine months period, a total of 71,790 ounces of gold were sold
at the spot market at an average price of US$928 for total income of
US$66.6M. Total cash costs averaged US$383 to produce an ounce of gold
during this period.
Paul-A. Girard, President and CEO of MDN stated: "The operator has
done a great job by continuously improving the underground mine
operations. The year to date production results is above the annual
budget forecasts and based on the ongoing mining activities and the
favorable gold market conditions, the future looks good for
Tulawaka."
The Tulawaka project is a joint-venture between MDN (30%) and Pangea
Goldfields Inc. (70%), a wholly owned indirect subsidiary of Barrick
Gold Corporation and project operator through its Tanzanian subsidiary
Pangea Minerals Ltd. The information disclosed on the Tulawaka Gold
Mine is based on information provided by the operator.
MDN is a mining exploration and development company having adequate
financial resources to develop its very promising projects in Quebec
and in Tanzania and to search for new business opportunities that can
raise shareholder value. In addition to its 30% participation in the
Tulawaka Gold Mine, MDN is the operator and owner of a majority
interest in 35 mineral licenses totaling 621 sq.km around the Tulawaka
gold mine in Tanzania, and owns a 28.75% interest in a property with a
NI 43-101 niobium and tantalum resource located in the Lac St-Jean area
of Quebec.
Forward looking statements
All statements in this release, other than statements of historical
fact, that address events or developments that the Company expects to
occur, are forward looking statements. Although the Company believes
the expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of future
performance and actual results may differ materially from those in
forward looking statements. Factors that could cause the actual results
to differ materially from those in forward-looking statements are
discussed in greater detail in the Company's most recent Annual
Information Form filed on SEDAR, which also provides additional general
assumptions in connection with these statements. Investors and others
who base themselves on the Company's forward-looking statements should
carefully consider the factors mentioned in the Annual Information Form
as well as the uncertainties they represent and the risk they entail.
The Company believes that the expectations reflected in those
forward-looking statements are reasonable, but no assurance can be
given that these expectations will prove to be correct and such
forward-looking statements included in this press release should not be
unduly relied upon. These statements speak only as of the date of this
press release.
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